• Cooperative societies is a State Subject under Entry 32 of the State List of Seventh Schedule of the Constitution of India. While cooperative societies functioning within a single state are governed by the Cooperative Societies Act of their respective states, cooperative societies functioning in more than one state/UT are governed by the Multi-State Cooperative Societies Act, 2002 under the purview of the Government of India (GoI).
• Primary Agricultural Credit Societies (PACS) are basically credit societies that are registered under the Cooperative Societies Act of the State concerned. They are distinguished by the nature that they are grassroots-level institutions in villages with individual farmers, artisans, and other weaker sections as member shareholders. They form the lowest tier of the federated short-term cooperative credit structure with District Cooperative Banks (DCCBs) and/or State Cooperative Banks (StCBs) in their upper tiers.

• The PACS have so far been largely out of the ambit of the technology support. The large outreach of PACS to the Small and Marginal Farmers (SMFs) makes them a systemically important class of agricultural credit purveying institutions. Keeping in view the above and to make PACS self-reliant in tune with ‘Atmanirbhar Bharat Abhiyaan’, the Government of India (GoI) has, on 29th June 2022 approved the Centrally Sponsored Project for Computerisation of Primary Agricultural Credit Societies for a period of five years from 2022-23 to 2026-27. PACS computerization entails bringing all the functional PACS onto an ERP (Enterprise Resource Planning) based common software, linking them with NABARD through State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs).

There are 3 components of assistance to the PACS under the scheme:

• Hardware – Each PACS under the scheme will be given a computer, webcam, VPN, printer, and a biometric device. This would enable the rest of the steps to be completed.
• NLPS (National Level PACS Software)/ ERP – An ERP is being developed for the PACS which will enable it to digitize its day-to-day functions, provide better services to the members, and proper reconciliation of its accounts. NABARD has onboarded the National Level PACS Software Vendor (NLPSV) who is developing the ERP modules.
• System Integrator – PACS in each State/ UT will be assigned to one or more SIs which will help the PACS to digitize its legacy data, adapt the ERP and customize the ERP as per the state’s policies.

• The scheme is operational from 2022-23 to 2026-27 for a period of five years.

• The stakeholders of the scheme are the Government of India, State Governments, NABARD, State Cooperative Bank, District Central Cooperative Banks, Primary Agricultural Credit Societies, National Level PACS Software Vendor (NLPSV), National Level Data Repository Vendor (NLDRV), System Integrator (SI) of each State, etc.

• The project is backed by the Ministry of Cooperation.

• The scheme will benefit 63,000 PACS.

• One common ERP software will be provided to all the PACS in the project, across the country, to capture data on all functionalities of PACS, both credit and non-credit. This software would be customizable for state-specific needs.

• Handholding support for a total 5 years from 2022-23 to 2026-27 by System Integrators, NABARD, etc., is envisaged in the scheme.

• PMU is responsible for planning and monitoring of the project. The PMU is hired by NABARD.

The expected outcomes of the project are

• PACS functions will be faster, transparent, and accountable.
• Migration of the legacy data.
• Timely generation of MIS.
• Improved facilities (credit & non- credit) to members at PACS level.
• Financial irregularities can be prevented on time.
• Increase in work efficiency of the PACS staff.
• Enhanced financial inclusion and business opportunities for the members.